Simon Goldie, Director of Business Finance & Advocacy
I recently asked, Do We Need a Small Business Strategy?
Last week, we got the Government’s answer in their Backing Business: Our Plan for Small and Medium Sized Businesses‘.
The range of policy interventions includes an increase in power for the Small Business Commissioner – quite rightly as poor payment practices remain a major concern. The Commissioner can now fine offenders and perform spot checks on companies.
We were also pleased to see key FLA recommendations in the plan, specifically an independently backed business information service to help smaller businesses access finance.
Our own research, and work done in conjunction with the Federation of Small Businesses, has shown that smaller businesses don’t always know what the right kind of finance might be right for their circumstances, or where to get it. To help smaller businesses we produced our Getting Match Fit for Finance tool which helps firms check that they are ready for finance. We have also campaigned for a business information service.
This has now been answered with the Government announcing that the British Business Bank’s longstanding Finance Hub will be enhanced and integrate into the new Government Growth Service.
The Government also confirmed that the Growth Guarantee Scheme has been extended through to the 2030 Spending Review. Again, we strongly urged HM Treasury to provide lenders with as much certainty as possible on the duration of such support schemes. This will ensure longer term planning and increase investment.
Will the Plan deliver? That depends on many factors such as economic conditions. What we can say is that the right foundations have been put in place.